Securing the Future
Priorities for the UK Plastics Industry in a New UK-EU Relationship
Plastics — fundamental to the UK economy
T
he plastics industry is one of the UK’s largest manufacturing sectors — it employs more people than the pharmaceutical, glass, paper, nuclear and steel industries combined. Approximate direct employment in various manufacturing sectors
£23.5 bn plastics industry turnover
400,000 380,000 360,000
170,000
180,000 160,000 140,000 120,000 100,000 80,000
people employed
60,000 40,000 20,000
Food and Drink
Plastics
Automotive Manufacturing
Defence
Chemical
Furniture, bed and furnishings
Aerospace
Marine
Mining and Quarrying
Nuclear
Pharmaceutical
Paper
Steel
Glass
0
With a turnover of £23.5bn, this industry includes raw material producers, machinery and equipment suppliers, manufacturers of a huge range of semi-finished and finished goods, and recyclers. Plastics underpin many sectors in the UK economy including automotive, aerospace, construction, energy, electrical and electronic, healthcare, agriculture and food distribution. None of these sectors could function effectively without plastics. Maintaining a business climate that supports investment is crucial for the UK, as a large percentage of UK plastics companies are ultimately foreign owned. This is especially true of the larger companies.
65%
of plastics and plastic products exported by the UK go to EU countries
53%
UK average
69%
of imported plastics and plastic products come from the EU
45%
UK average
6,200 companies in the plastics industry
30+% plastics and plastic products exported
Free access to the single market The EU is the UK’s single most important trading partner for plastics materials and products. Maintaining easy access is strategically important for the UK plastics industry. Plastics are one of the UK’s top ten exports. In 2015 exports of plastics and plastic products to the EU totalled £4.9bn. However, the UK plastics industry is heavily reliant on imports compared to other global players. In 2015 it exported £1.8bn of raw materials to EU member states but imported £3.8bn. Whereas France, Germany and Spain all produce more plastics than they consume, the UK only produces about 50% — and some key plastics materials are not manufactured in the UK at all. Not only is the UK plastics industry heavily reliant on imported raw materials, almost all machinery is imported — and 80% of that is sourced from the EU.